FS urges continued caution

November 04, 2011

Financial Secretary John Tsang warns that the uncertainty surrounding the global environment will likely persist for some time. Hong Kong must keep up vigilance against any possible external shocks and maintain a healthy fiscal position to cater for possible spending needs in the event of further worsening of global economic conditions.
 
Mr Tsang was speaking in Cannes, France, at the two-day G20 Leaders Summit yesterday, saying he welcomed the proposed measures to boost economic growth, address global imbalances and ensure world financial stability, outlined in a communique highlighting the need for sustainable growth of the global economy and the importance of strengthening financial regulatory reforms.
 
These reforms include the implementation of Basel III and measures to address moral hazards posed by systemically important financial institutions.
 
Mr Tsang said he was impressed by the sincerity and determination of G20 leaders in coming up with plausible measures to address the European debt crisis and other contemporary issues, such as large fiscal deficits threatening global growth.